Hexagon Composites — Earnings Release 2015

Oct 29, 2015

Hexagon Composites ASA: Results for the third quarter 2015

Hexagon Composites ASA: Results for the third quarter 2015

In the third quarter 2015 Hexagon Composites generated NOK 256.9 (349.3) million

in operating income and made an operating loss before depreciation (EBITDA) of

NOK -31.0 (75.1) million. Operating loss (EBIT) was NOK -43.8 (55.5) million and

profit/loss before tax came to NOK -56.0 (59.7) million.

Operating results declined compared with the third quarter of 2014, impacted by

significantly lower sales volumes for Mobile Pipeline(TM) solutions and

seasonally low sales volumes of Low-Pressure Cylinders. The heavy-duty truck

market in North America remains robust and the transit bus markets in North

America and Europe continue to display healthy growth.

Key developments:

* EBITDA loss for the quarter driven by low Mobile Pipeline(TM) and impact of

seasonal Low-Pressure Cylinders sales

* Awarded extended MAN Truck & Bus supplier nomination for global transit bus

market

* Released 16-inch all-carbon cylinder for transit bus and refuse truck market

* Secured new long-term Low-Pressure Cylinders distribution agreement with

Gasco in Saudi Arabia

* Restructuring of European Light-Duty Vehicles business unit according to

plan

* Initiated a further program of cost saving initiatives to enhance weak

short-term profitability

* Continued positive overall impacts of USD currency developments compared to

same period last year.

For more information:

Jon Erik Engeset, CEO, Hexagon Composites ASA

Telephone: +47 916 30 550 | jon.erik.engeset@hexagon.no

David Bandele, CFO, Hexagon Composites ASA

Telephone: +47 920 91 483 | david.bandele@hexagon.no

Solveig D Saether, Communication Manager, Hexagon Composites ASA

Telephone: +47 906 34 977 | solveig.saether@hexagon.no

www.hexagon.no/investors

About Hexagon Composites ASA

Hexagon Composites ASA is a leading global supplier of composite pressure

cylinders for gas applications. Based in Ålesund, Norway, the Group generated

NOK 1 651 million in operating income in 2014. Production is carried out in

modern, automated plants in Norway and the US.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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